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The RealReal (The RealReal) ROC (Joel Greenblatt) % : -38.73% (As of Dec. 2023)


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What is The RealReal ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. The RealReal's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -38.73%.

The historical rank and industry rank for The RealReal's ROC (Joel Greenblatt) % or its related term are showing as below:

REAL' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -262.8   Med: -143.6   Max: -73.07
Current: -76.69

During the past 7 years, The RealReal's highest ROC (Joel Greenblatt) % was -73.07%. The lowest was -262.80%. And the median was -143.60%.

REAL's ROC (Joel Greenblatt) % is ranked worse than
91.34% of 1108 companies
in the Retail - Cyclical industry
Industry Median: 9.975 vs REAL: -76.69

The RealReal's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 24.50% per year.


The RealReal ROC (Joel Greenblatt) % Historical Data

The historical data trend for The RealReal's ROC (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The RealReal ROC (Joel Greenblatt) % Chart

The RealReal Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial -219.07 -143.60 -103.09 -78.19 -73.07

The RealReal Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -61.02 -145.62 -78.20 -40.63 -38.73

Competitive Comparison of The RealReal's ROC (Joel Greenblatt) %

For the Luxury Goods subindustry, The RealReal's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The RealReal's ROC (Joel Greenblatt) % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, The RealReal's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where The RealReal's ROC (Joel Greenblatt) % falls into.



The RealReal ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(13.564 + 24.657 + 20.933) - (92.626 + 1.646 + 62.8)
=-97.918

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(17.226 + 22.246 + 20.766) - (106.303 + 2.214 + 60.251)
=-108.53

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of The RealReal for the quarter that ended in Dec. 2023 can be restated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-75.896/( ( (201.486 + max(-97.918, 0)) + (190.435 + max(-108.53, 0)) )/ 2 )
=-75.896/( ( 201.486 + 190.435 )/ 2 )
=-75.896/195.9605
=-38.73 %

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


The RealReal  (NAS:REAL) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


The RealReal ROC (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of The RealReal's ROC (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


The RealReal (The RealReal) Business Description

Traded in Other Exchanges
Address
55 Francisco Street, Suite 400, San Francisco, CA, USA, 94133
The RealReal is the largest luxury resale platform in the U.S., generating $1.8 billion in 2022 gross merchandise volume and addressing a niche (personal luxury resale) that had previously been serviced by inefficient upscale boutiques and local pawn shops. The firm generates revenue via consignment and first-party sales on its online marketplace, and through direct sales across its brick-and-mortar footprint. With a hands-on approach that actively sources inventory and authenticates every item on its platform, The RealReal is able to justify much higher take rates than peers, working out to roughly 35% of net merchandise value, which excludes returns, cancellations, and first-party sales.
Executives
John E Koryl director, officer: Chief Executive Officer 55 FRANCISCO STREET 4TH FLOOR, SAN FRANCISCO CA 94133
Levesque Rati Sahi officer: Chief Operating Officer 55 FRANCISCO, SAN FRANCISCO CA 94133
Robert J Krolik director 873 SANTA CRUZ AVE, SUITE 206, MENLO PARK CA 94025
Luke Thomas Friang officer: Chief Product & Tech Officer 20614 NE 38TH STREET, SAMMAMISH WA 98074
Todd A Suko officer: Chief Legal Officer and Secy. 7251 WEST 4TH STREET, GREELEY CO 80634
Steve Ming Lo officer: VP, Corporate Controller 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Robert K. Julian officer: Chief Financial Officer C/O SPORTSMAN'S WAREHOUSE, 7035 SOUTH HIGH TECH DRIVE, MIDVALE UT 84047
James R. Miller director 4050 EAST COTTON CENTER BLVD. 6-68, PHOENIX AZ 85040
Julie Wainwright director, officer: CEO, President and Chairperson C/O THE REALREAL, INC., 55 FRANCISCO STREET, SUITE 600, SAN FRANCISCO CA 94133
Arnon Katz officer: Chief Product & Technology Off 3331 VERDUN AVE, SAN MATEO CA 94403
Matt Gustke officer: Chief Financial Officer 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Karen Katz director
Fredrik Bjork officer: Chief Technology Officer 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Baird Gilbert L. Iii director 5075 S. SYRACUSE ST., DENVER CO 80237
Michael Andrew Kumin director C/O GREAT HILL PARTNERS, L.P., 200 CLARENDON STREET, 29TH FLOOR, BOSTON MA 02116

The RealReal (The RealReal) Headlines